As befits a geographically small country undergoing rapid economic development, Israel boasts a very active real estate market. Construction and development in the market is dominated by the private sector, while the land market is dominated by the government. The real estate market in Israel has undergone and is continuing to undergo a significant process of maturation, moving from a market characterized by limited choice and options and low quality construction, to one which now boasts a wider range of alternatives in terms of location, size, building quality, and amenities.
The foreign investor seeking to purchase or lease a property in Israel for investment or for corporate use should familiarize himself with the operation of the market in Israel, in terms of pricing dynamics, location alternatives, the types of property available, and the legal and financial framework within which the Israeli market operates.